U.S. senators ban themselves from prediction markets trading
CNBC • • nation
Key Points:
- The U.S. Senate unanimously passed a rule banning senators from trading on prediction markets, effective immediately, amid concerns about insider trading and ethically sensitive event contracts.
- Recent incidents include Kalshi fining political candidates for insider trading and the arrest of a U.S. Army Special Forces soldier accused of using classified information to profit nearly $410,000 on Polymarket bets related to a military mission.
- Democratic lawmakers urged the Commodity Futures Trading Commission to enact broader regulations preventing insider trading and banning event contracts on elections, war, and other sensitive government actions.
- Prediction market platforms Kalshi and Polymarket welcomed the Senate's action, emphasizing their existing policies against insider trading and calling for similar legislation in the House.
- CNBC disclosed a commercial relationship with Kalshi, including a minority investment, highlighting the network's interest in the prediction market industry.
